Economy remains strong, says Emefiele

Doris Richards
January 23, 2018

Nigerian stocks fell 2.7 pct to a one-week low on Tuesday after the central bank called off an interest rate meeting scheduled for January 22-23 because a backlog of appointments to the Monetary Policy Committee (MPC) meant it would not be quorate.

The meeting could not hold due to the non-confirmation of the MPC nominees by the Senate.

The committee, which comprises of 12 members, is required by the CBN act to form a quorum before it meets to decide on interest rate.

"Despite this development, we are pleased that key economic indicators continue to move in the right direction".

The MPC now meets six times a year, while the Central Bank Act requires the committee to gather only a minimum of four times annually.

The Investors' and Exporters' (I&E) forex window, opened by the Central Bank of Nigeria (CBN) in 2017, has now attracted inflows of about $13 billion due to strong investor confidence in the country's economy, apex bank Governor, Mr. Godwin Emefiele, has revealed.

Okorafor reiterated the Bank's determination to continue to intervene in the interbank foreign exchange market in line with its pledge to sustain liquidity in the market and maintain stability.

The positive economic outlook and the foreign exchange inflows have also impacted positively on the capital market which boosted the market capitalization by 22.3 per cent from N13.21 trillion on November 30, 2017 to N16.15 trillion as at January 19, 2018.

"The management of the CBN is determined to sustain these gains and will continue our vigilance and proactivity to ensure macroeconomic stability through 2018". The CBN will issue a revised schedule of MPC meetings once it has met statutory requirements of membership and quorum, it said.

President Muhammadu Buhari, in October 2017, nominated Mrs Aisha Ahmad as Deputy Governor of the Central Bank of Nigeria.

The decision to cancel the meeting comes as several new members of the MPC are yet to be approved by lawmakers, a situation resulting from a standoff between Nigeria's presidency and parliament over the latter's powers to confirm - or deny - executive nominees to key posts within the government.

Other reports by Iphone Fresh

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